Category: Ethiopia

A ‘blossoming partnership’: digital corridor drives Kenyan flower exports to UK

International trade, however, has a huge part to play in keeping the UK’s florists stocked with fresh cut flowers. The second top import market to the UK for flowers is Kenya, which supplies just over 8 percent of British-sold flowers, or 10,000 tons, worth not far off £67 million. Cut flowers account for 25% of all Kenyan imports to the UK. The Institute of Export & International Trade has been working with donor organization TradeMark Africa (TMA) to implement a ‘digital trade corridor’ between the UK and Kenya to help simplify trade between the two nations. The initiative, called the ‘UK-Kenya Trade Logistics Information Pipeline’ (TLIP), aims to eliminate documentation and introduce better visibility in the supply chains flowing between the UK and Kenya. This initiative builds upon on the Kenya-UK Economic Partnership Agreement, which was signed in December 2020. TLIP's system uses blockchain technology to link all those in a supply chain together, enabling faster logistics and easier trading. Marco Forgione, director general of the IOE&IT, said: “This Valentine’s Day when you were giving your loved one a beautiful bouquet of flowers, consider the journey they have taken to put that smile on their face. Around nine different organizations are involved with the transportation of flowers from Kenya before they enter your home and all of these actions in the supply chain require documentation to move the goods along on their journey. “The trade corridor we are creating will provide more transparency and enable all actors to view the...

Rwandan truckers see Tanzanian barriers to trade reduce

Rwanda’s small trucking industry hasn’t had much to shout about recently, unless it was to complain about interminable roadside delays due to bureaucracy, corruption and paperwork. Until now. Some neat diplomatic footwork with neighbouring Tanzania has given Rwandan truckers some good news in an industry where time is money, costs are high, and margins small and the playing field tilted towards the regional giants and their huge trucking sectors. “Yes, some good news for a change,” says Theodore Murenzi, head of the Rwanda Truckers Association. “Tanzania has dropped a road toll which penalized Rwandan trucks on the central corridor. It’s not 100% good news, but it’s a real start.” A study into the competitiveness of Rwanda’s road freight industry highlighted what Rwandan truckers had long complained about – Tanzania charged Rwandan trucks a $500 transit toll yet Rwanda charged Tanzanian registered trucks only $152, putting Rwanda’s drivers at a $348 disadvantage every return trip and adding to already high costs. Such bureaucratic hurdles to free trade are known as Non Tariff Barriers (NTBs). The EAC is committed to eliminating them altogether, but the process is laborious and the barriers cemented in protectionism. “We registered this as an NTB at the level of the EAC, but the harmonization of the road toll at EAC level is not decided,” says Vincent Safari, head of the National Monitoring Committee on NTBs. “But the study was evidence-based, factual and detailed and we were confident it would succeed, somehow.” After validation of the findings of...